Customer insights – June 2021

July 5, 2021

This month we updated the AML Accelerate Australian AML Program/Policy template to incorporate recent reforms to the AML/CTF Act, meanwhile, the Risk Assessment platform introduces a new Fraud risk model. We are also seeing exciting use of the Risk Assessment platform to create risk models for everything from Climate Change to Information Security (ISO).

AUSTRAC has announced reforms to the AML/CTF Act that are in effect from 17 June 2021.

The reforms clarify obligations regarding customer due diligence before providing a designated service, involve changes to strengthen the protections for correspondent banking relationships, expand the circumstances in which reporting entities can rely on a third party for customer identification and verification, and expand the exceptions to the prohibition of tipping off.

We have updated the AML Accelerate platform by incorporating the reforms into the Australian AML Program/Policy template:

New section 9.2 Reliance on third parties
New section 18.7 Cross-border movement reports
Expanded section 20.2 Tipping off
New chapter 25 Correspondent banking

In AML Accelerate it is very quick and easy to roll forward an existing program/assessment and then apply the new AML Program/Policy if you are intending to implement the new rules in your organisation.

Our suite of risk models continues to grow with the addition of the much-requested Fraud risk model.

Conduct a fraud risk assessment to help you better understand your exposure to fraud, the associated risks,and the strength of your risk-mitigating controls. A fraud assessment helps to identify how potential fraudsters might attempt to target your business.

In addition to the suite of risk models available out-of-the-box, the Risk Assessment platform is designed to be flexible and configurable so you can create risk models, methodologies and risk assessments for just about anything.

It has empowered users from diverse industries to evolve their risk and compliance functions beyond spreadsheets.

Just this month we have seen the platform used to:

assess the risk and impact of climate change on businesses
assess compliance with requirements of the international standards for information security (ISO 27001)

Frequently Asked Questions

Great questions continue to come in from our community of users. Here are the latest questions and their answers.

Q: What does country risk rating “Restricted” mean?

A: When a country is rated “Restricted, it means there are restrictions on what business can be done with that country. It is a very high risk to do business with those countries, and it is recommended to conduct screening on any transactions (via appropriate data services) to prevent sanctions breaches.

Q: Where to see the overall residual risk rating in AML Accelerate?

A: The overall risk rating is displayed in the Review and Publish chevron within AML Accelerate, and also in the combined PDF report that can be generated from AML Accelerate. See the FAQ article for detailed instructions.

Q: What are the dependencies for App Setup content in the Risk Assessment platform, such as the Risk Model or Methodology?

A: You can create a complete set of company content or use a mix of global and company content; for example, a company risk model that is dependent on the global domain, methodology, and answer sets.

When considering creating company content, you should also consider the dependent content that will need to be created; for example, creating a company methodology will require company answer sets, risk models, and country risk model to also be created as they are dependent on the methodology. For diagrams and more detail, see the FAQ article.

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